The U.S. House of Representatives has approved legislation removing the 1099 reporting requirement from the health care reform law passed last year.
H.R. 4, the “Small Business Paperwork Mandate Elimination Act,” was adopted after TIA, SEMA and other small business organizations pushed for the provision.
The legislation will now be sent to the Senate for action.
Under the House bill, businesses will no longer be required to issue 1099 forms to all vendors from whom they buy more than $600 worth of goods or services in any year, beginning in 2012.
The provision has garnered widespread opposition on Capitol Hill, and President Obama called for its repeal during his State of the Union address.